Laserfiche WebLink
EXHIBIT 3 <br />Judson Brown, City of Santa Ana January 9, 2019 <br />Francis Xavier Residence: Preliminary Financial Gap Analysis Page 11 <br />2. It should be noted that the Developer and City staff are discussing the possibility <br />of adding ground floor retail space to the Project. The addition of retail space to <br />the Project may require this financial analysis to be updated. Furthermore, it is <br />important to note that the LMIHAF funds cannot be used to pay for any retail <br />costs. <br />3. While the construction costs appear reasonable, KMA recommends that the City <br />require the Developer to obtain three general contractor bids prior to selecting a <br />general contractor. The three bids should be provided to the City for review and <br />approval. <br />4. KMA recommends the following ground lease terms: <br />a. A 55 -year ground lease. <br />b. A capitalized ground rent payment equal to the appraised fair market <br />value of the Site and secured by a promissory note with the following <br />terms: <br />i. A 3% simple interest rate; and <br />ii. Repayment of the capitalized ground rent promissory note equal <br />to the pro rata share of 50% of residual receipts with other soft <br />lenders. <br />1901007:SA:TRB <br />19090.017.010 <br />00 M <br />